Jaguar Land Rover has announced plans to create 750 UK jobs at a new engine plant in Wolverhampton.

The project will bring a significant economic boost to the West Midlands with an investment of £355 million and will support the development of high value manufacturing and skills in the UK.

JLR chief executive Dr Ralf Speth said: “We expect the engine manufacturing facility to create up to 750 highly-skilled engineering and manufacturing posts at Jaguar Land Rover, along with hundreds more highly-skilled manufacturing jobs in the supply chain and the wider UK economy.”

Speth said the new four-cylinder engines will increase JLR’s capability to offer high-performance engines while ensuring continued significant reductions in vehicle emissions.

It is also likely that the project will create many more UK supply chain jobs. It was welcomed by Deputy Prime Minister Nick Clegg and Business Secretary Vince Cable.

The Government is supporting JLR's project through the ‘Grant for Business Investment' scheme which is providing up to £10 million.

Paul Everitt, SMMT chief executive, said: "Today’s announcement is excellent news for UK automotive and comes as SMMT meets high profile politicians to promote investment led growth.

“Government now needs to build on this momentum, working closely with the Automotive Council to help deliver growth in automotive manufacturing and the supply chain.”